UK property fund managers are being forced to hold above-average levels of cash as money continues to flood into the IMA Property sector.
Property has been one of the most popular asset classes this year as investors seek higher returns than those currently provided by bonds and equities. According to the IMA, a net £315m flowed into the property sector in September, up from £242m during August. As a result, fund managers are finding themselves holding high levels of cash as they wait for opportunities to arise to buy properties. Both the L&G UK Property fund and F&C UK Property fund hold 25% in cash while Standard Life Investments' UK Property fund has 23%. The vehicles, which are all bricks and mortar funds, ha...
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